Australia Green Hydrogen Market

Australia Green Hydrogen Market Overview:

The Australia green hydrogen market size reached USD 47.23 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,446.59 Million by ​2033​, exhibiting a growth rate (CAGR) of 48.40% during ​2025-2033​. The market is driven by coordinated government incentives, including the Hydrogen Production Tax Incentive and concessional financing, which reduce early-stage project risk. Strategic international collaborations with partners in Japan, South Korea, and the EU are fueling capital inflow for export-oriented hydrogen ventures. Expanding port-based hydrogen hubs and standardized certification schemes are enhancing commercial viability, further augmenting the Australia green hydrogen market share.

Australia Green Hydrogen Market Trends:

Regulatory Enablement and Institutional Support

The market is actively shaped by a structured and coordinated policy environment. Federal and state governments have introduced dedicated hydrogen roadmaps outlining measurable objectives, with an emphasis on early infrastructure rollout, investment attraction, and technology development. Moreover, targeted funding programs are supporting feasibility studies, demonstration projects, and electrolyzer installations, while regulatory bodies work on establishing clear standards for green hydrogen production and transport. Notably, in May 2024, the Australian government unveiled a new Hydrogen Production Tax Incentive (HTPI) that would pay developers AUD 2 (USD 1.32) per kilo of green hydrogen throughout ten years beginning in 2027. Public sector financial institutions are extending concessional finance and credit enhancements to mitigate early-stage risk. In addition to this, state governments are designating renewable energy zones and green hydrogen development precincts to streamline land allocation and permitting. Concurrently, national science and innovation agencies are funding applied research into efficiency improvement and cost reduction in electrolyzer systems. By addressing market entry barriers through a combination of capital incentives, regulatory clarity, and institutional coordination, Australia is positioning itself as a first mover in scaling up green hydrogen supply. These interventions are critical to bridging the current cost differential between green and fossil-derived hydrogen and attracting long-term investment.

Export-Focused Strategy and International Alignment

The market is structured with a clear orientation toward export markets, leveraging its comparative advantage in renewable energy resources. The country is pursuing long-term trade partnerships and investments from countries such as Japan, South Korea, and the European Union, all of which are adopting hydrogen import strategies as part of their decarbonization frameworks. For instance, in 2024, a global consortium including Iwatani Corporation, Keppel, Stanwell Corporation, and Marubeni Corporation committed AUD 117 Million to the Central Queensland Hydrogen Project (CQ-H2). The investment will fund a FEED study for one of Australia's largest green hydrogen ventures, targeting production of 200 tonnes per day by 2029 and 800 tonnes per day by 2031 using renewable energy. Additionally, the country's export strategy involves the development of port-based hydrogen hubs integrated with dedicated renewable energy generation, electrolyzer facilities, and storage infrastructure. Strategic collaboration with foreign governments and energy companies to co-develop production projects, establish shared technical standards, and ensure future offtake is providing a boost to Australia green hydrogen market growth. The approach draws from Australia's experience as a global LNG exporter, wherein long-term bilateral supply contracts underpinned upstream investments. Also, a continual effort focusing on aligning with hydrogen certification schemes to verify emissions intensity is enhancing the market appeal. These measures are intended to create commercial certainty and facilitate capital mobilization for large-scale export-ready hydrogen projects.

Australia Green Hydrogen Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on technology, application, and distribution channel.

Technology Insights:

• Proton Exchange Membrane Electrolyzer
• Alkaline Electrolyzer
• Others

The report has provided a detailed breakup and analysis of the market based on the technology. This includes proton exchange membrane electrolyzer, alkaline electrolyzer, and others.

Application Insights:

• Power Generation
• Transport
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes power generation, transport, and others.

Distribution Channel Insights:

• Pipeline
• Cargo

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes pipeline and cargo.

Regional Insights:

• Australia Capital Territory & New South Wales 
• Victoria & Tasmania 
• Queensland 
• Northern Territory & South Australia 
• Western Australia 

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia. 

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Green Hydrogen Market News:

• On January 28, 2025, Japanese energy company ENEOS announced an AUD 200 million investment in a green hydrogen demonstration plant in Queensland, Australia. The project, supported by the Queensland and Australian Governments, will produce hydrogen using renewable energy and aims to export it to Japan in methylcyclohexane (MCH) form. This investment strengthens Australia–Japan clean energy collaboration and reinforces Queensland’s position as a major player in the global hydrogen economy.
• On March 20, 2025, ARENA announced $814 Million in conditional funding for Copenhagen Infrastructure Partners’ 1,500 MW Murchison Green Hydrogen Project in Western Australia under the Hydrogen Headstart Program. The project, powered by 1.2 GW of solar and 1.7 GW of wind energy, aims to produce renewable hydrogen and ammonia entirely off-grid, with a production capacity of up to 3,600 tonnes per day of ammonia.

Australia Green Hydrogen Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia green hydrogen market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia green hydrogen market on the basis of technology?
• What is the breakup of the Australia green hydrogen market on the basis of application?
• What is the breakup of the Australia green hydrogen market on the basis of distribution channel?
• What is the breakup of the Australia green hydrogen market on the basis of region?
• What are the various stages in the value chain of the Australia green hydrogen market? 
• What are the key driving factors and challenges in the Australia green hydrogen market?
• What is the structure of the Australia green hydrogen market and who are the key players?
• What is the degree of competition in the Australia green hydrogen market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia green hydrogen market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia green hydrogen market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia green hydrogen industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.